Biogen Come Back?

Yesterday Biogen Idec and Elan reported that there no new cases of PML. Investors reacted favorably to the news by bidding up shares in Biogen Idec (BIIB) and Elan (ELN). Are they over reacting? Here’s one analyst’s take on the news:

An analyst from Robert Baird & Co. stated the following in BioWorld: “…even in the best-case scenario – near term Tysabri re-launch – we still see a limited commercial opportunity for Tysabri, given its safety profile.” He has a neutral rating on Biogen Idec.

I believe the market reacted appropriately to the news. The market pretty much wrote off any potential come back of Tysabri. Now there’s a good chance that Tysabri will come back on to the market. It won’t be a blockbuster by any means. I certainly hope that Tysabri is proven to be safe and will improve the quality of life for MS patients. Biogen is going higher, but how high?

Note: I have a position in Biogen Idec.